The CME housing futures that track the S&P/Case-Shiller median home price indices of 10 major cities offer a clue into how much more investors think home prices have to fall. In the chart below, we highlight the percentage difference between the October '08 actual Case-Shiller numbers (the most recent set of numbers) and the current price of the November '09 futures contracts. The composite 10-city November '09 contract is currently trading 12% below its October '08 level. San Francisco is expected to fall the most in 2009 at -18%, followed by Los Angeles (-16.6%), and Las Vegas (-13%). The rest of the cities are expected to fall less than the composite, with Boston home prices expected to fall the least at -6%. Miami, Denver, DC, and San Diego are all expected to see home prices fall by less than 10% from 10/08 to 11/09.
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